Certainly you have heard about both the House and the Senate signing the American Taxpayer Relief Act due to the excessive media coverage of the ‘fiscal cliff.’ There is, however, one part of the Act we have not seen explained on the news and thought you might be interested.
IRA Distributions to Charity
The act extends the qualified direct distributions to charity of your IRA distribution, including your RMD amounts, through 2012 and 2013. They did make this retroactive to 2012, even though the year ended and RMD’s were completed during 2012.
There are two ways to make your 2012 IRA distribution a Qualified Charitable Distribution:
You can recharacterize distributions made in January 2013 as though they had been made in December 2012
You can treat a December 2012 distribution from your IRA as a charitable distribution if the monies are transferred to the charity before February 1, 2013.
If you would like to learn more please contact us. We are here to assist you.